USPS Resumes China Shipments Amid De Minimis Policy Shift

The U.S. Postal Service (USPS) has reinstated parcel shipments from China and Hong Kong after briefly suspending them due to President Donald Trump’s removal of the "de minimis" duty exemption, which allowed retailers like Temu, Shein, and Amazon (NASDAQ: AMZN) to ship low-value packages duty-free. The policy change, aimed at curbing the flow of fentanyl and precursor chemicals, has caused confusion among retailers and logistics firms over tariff collection and customs clearance.

FedEx (NYSE: FDX) suspended its money-back guarantee for international shipments as disruptions emerged. Reports indicate that U.S. Customs and Border Protection (CBP) at JFK International Airport is holding all shipments from China. The sudden shift has left businesses scrambling, with experts calling for clearer government guidance.

In 2024, approximately 1.36 billion shipments entered the U.S. under the de minimis rule, a 36% increase from 2023. Some reports suggest drug traffickers have exploited this exemption, prompting the crackdown. The USPS is working with CBP to implement an efficient tariff collection system while minimizing delivery disruptions.

Retailers and shipping firms are struggling with the shift. Previously, de minimis packages were processed in bulk, but individual clearance requirements will now add delays and increase costs for brokers and customs agents. Fast-fashion giants Shein and Temu, which accounted for over 30% of daily de minimis shipments, have yet to respond.

FedEx, DHL, and UPS are adapting their systems to handle duties, though air freight remains vulnerable to delays. Some JFK shipments are reportedly being held despite duties being paid. As uncertainty persists, there’s no scheduled call between Trump and Chinese President Xi Jinping regarding tariffs and Beijing’s countermeasures.